Seventh Wave Trading (maybe it IS rocket science after all?)

Current trades this afternoon, everything going ok. Probably just going to trail these for a while and not open too many more but if I see something I fancy I'll take it.

Hugh,
Have you worked with this system long enough to establish how many pips a week you are averaging?
Bob

Not in its current form. I'm less concerned with the number of pips than the equity level of the account at the moment. When I start withdrawing money from the account I will be by necessity recording my weekly £ profit or loss so I will be able to start developing average return figures then.

Here are some charts with my current trades and some reasonable targets. Gbpusd looks the most interesting, it could run a good long way. I expect some of these to snap back and hit the stop losses but generally I will be taking profit at the next large round number as marked on the chart.

Last one.

Just closed eurcad trades. Pulling back quite sharply so I took some profit on the second trade and a good profit on the first, something like 170 pips in total on both trades. I'll keep an eye on this tomorrow, I'm interested in selling it again but I want to see 1.30 hold. A sell just below that level on the way back down would be nice.

While I'm here that eurnzd that I closed at 1.60 did carry on down. Similar to eurcad, I'd expect a pullback to maybe test 1.60 from below before a further push down.

Also gbpaud that I closed did come to life with the others and so I missed out on that. Nevermind, no point crying about the pips you didn't get.

Here's the situation at the moment, equity just under £140. Not bad considering that it went down to about £77 during the morning before the seventh wave hit and pushed it higher.

My watch list at the moment...

Eurusd down to 1.25
Eurgbp bounce from 0.83?
Eurjpy down to 96
Euraud down to 1.20 but I'll keep a close eye as it's a long way down!
Eurcad bounce from 1.30?
Eurnzd bounce from 1.60?
Usdchf long up to parity
Gbpusd short to infinity!
Gbpjpy a possible short if I can get a good entry
Gbpchf long from 1.45? Depends a lot on what gbp AND chf do
Gbpaud sell if it retests 1.50 from below
Gbpcad short to 1.55
Gbpnzd short to 1.90

That's it for the moment. It will probably take a couple of days to see what's going to happen with these. In the meantime I'm happy just holding what I have open and see how far they take me.

Equity just pushed over £142 as I type. Target of £200 by the end of the month is well in sight!

Have you considered holding trades for most of the week and scaling additional positions with each swing in your direction rather than closing trades on small retracements and reopening trades in the same direction?

That's pretty much the plan from now. The basic idea has gone through many reincarnations from holding til they stop going the right direction to closing when you're 5% of your account equity up per day.

The final version that I have settled on is to hold on to them until they hit strong s/r and then just close it out no questions asked, you usually get a good chance to reenter if the trend is going to continue. Also to follow with a stop loss behind any s/r levels in case the immediate trend does reverse sharply against you.

Closed the smaller gbpnzd trade for +255 pips, after such a big move today it could easily snap back tomorrow, wise to take half.

All ticking over nicely, see how it goes tomorrow.

Here's the picture this morning. I'm considering moving the stop losses on eurusd, eurjpy anf usdchf. I have good equity on those other trades so I can afford some drawdown and it feels as though those stop losses at break even are just a little too close and are likely to be hit by todays volatility. If I am right about the overall direction then I can afford to give them more room to develop and if I am wrong then I am wrong and will take small losses on each, no big deal, more good trades round the corner.

Moved stops as discussed above. Sold eurgbp at 0.83 resistance, m30 chart looks good. Sold eurcad again in light of eur looking weak across the board, it's not too far from resistance either so happy to sell it. Eurnzd same story. Sold chfjpy too, I am overall bearish this pair but every time I sell it seems to go the other way! I'll have another try today as resistance at 81 seems fairly strong.

Same plan as usual, I'll keep an eye on these trades during the day and any that start looking like bad trades I will close fairly quickly. I'll check back in at 11.

Put a pending order for gbpusd at 1.5265, if it breaks that it should be a good move down.

Here's the picture at 11.05. Equity dropped back quite a bit but no trades invalidated yet.

Just sold gbpjpy, I think the party is over for gbp strength.

Bad news, I took my eye off the ball and let all the equity slip away. I was expecting more eur weakness than transpired. So now the equity ea closed everything down at 90 gbp.

In hindsight I should have locked in 120 when the equity was floating around 140. That way the little bit of drawdown I expected would have been ok and anything major would have just shut everything down. I think that the good trades that are lost by this would not be such a big deal as you can always replace them and at least you are not then allowing a large amount of equity to slip away in the manner that I let it this afternoon.

Oh well, it's no big deal, I'm still break even for the week, just annoying to have let a good profit go like that. I'll clear my head a little and start again, maybe later today, probably tomorrow morning for the Europe open.

Ok, two stand out straight away, sold gbpusd and eurcad, also put that gbpusd pending order back on.

Equity stop loss set at 50gbp just in case, I can start again from there and that gives me 40 gbp to work with.

Closed eurcad after it broke the trendline.

Gone flat now, just had gbpusd open and that's not how I trade! Going to wait until everything is going the right way and then get involved. I have noticed that the best profits are made when xxxusd and usdxxx are all playing ball together and you can judge the relative strengths better. Maybe that's a plan for a future improvement?

Anyway, I'm going to have a night off tonight and review things in the morning, if anything looks good then I will open it then. I'm not sure about tomorrow, it may be another pullback day for the euro which puts me off shorting gbp pairs as well, they do tend to move together.